Relief rally: too much too soon?
Relief rally: too much too soon? The equity rebound of the past month is a classic “relief rally” where investors are relieved conditions are not as bad as they previously […]
News
The ECB and the ‘kitchen sink’ approach
The European Central Bank (ECB) have very much taken the ‘kitchen sink’ approach, surprising market expectations in a variety of ways, not least an expansion of the asset purchase programme to include corporate bonds and opening the door to paying banks to borrow via the longer-term refinancing operations (LTROs). They hope that the measures announced will ease financial conditions and stimulate new credit creation, leading to stronger growth and a return of inflation to target.
Another ‘menu’ of easing, but will it be enough?
We expect the ECB to announce another menu of monetary policy easing including a 10bp deposit rate cut together with an introduction of a two-tier deposit rate system and a front-loading of the QE purchases.
Oil: still in the tunnel but light glimmers at the end
It will not be now and it will not be strong but the oil price recovery could start during 2016. Frank Nicolas, head of investment and client solutions at Natixis AM thinks that “even if oil falls a bit further there is light at the end of the tunnel”.
EU repo market activity – No sign of reversal of the downward trend
According to the latest ICMA repo survey, overall activity in the EU repo market declined slightly in December 2015. However, we think it is premature to consider this a sign of bottoming out after the last five-year downward trend. Regulation and abundant liquidity in a context of negative rates are likely to favour a further gradual contraction.
Europe’s Troubled Politics and Uncertain Future
Europe is facing a confluence of serious political challenges that put at risk the region’s continued integration as envisaged in the various treaties that govern the EU.
Rates lower for longer: the where and when of fixed income investments
There is room to move in the fixed income world. More room than some weeks ago. A 6% return this year can be possible from a diversified actively managed bond fund. Here are some ideas by Chris Iggo, chief investment officer of Axa fixed income.
Global markets: sell-off intensifies on recession fears
“It is quite clear that the initiatives taken by the Bank of Japan (negative deposit rates) and the European Central Bank (“pre-announcement” of further monetary easing in March) have failed […]